Judge: Reservation Of Rights Letter Delay Does Not Support Bad Faith Claim

Mealey's (October 10, 2019, 4:25 PM EDT) -- SALT LAKE CITY — A federal judge in Utah on Oct. 3 ruled that a third-party claimant has failed to show that an insurer’s delay in issuing a reservation of rights letter after providing its insured with a defense in an underlying civil lawsuit is sufficient to support a bad faith refusal to settle claim brought by the third party (Owners Insurance Co. v. Jacob Taylor Dockstader, No. 18-173, D. Utah, 2019 U.S. Dist. LEXIS 147286)....